Country’s first cryptocurrency ATM on Old Airport Road raided

The country’s first cryptocurrency ATM kiosk that was opened last week amidst fanfare in a mall on Old Airport Road has run into legal trouble as Central Crime Branch (CCB) officials raided it on Tuesday. The police said the kiosk set up by Unocoin Technologies Private Limited, a bit coin company based out of Rajajinagar in the city was installed and operating without any license. A person deployed for operating the kiosk, Harish, was arrested and Rs 1.79 lakh seized from him along with two laptops, five debit cards, one passport and few other documents.

“They did not have any licence from RBI, Sebi or any other agency to carry out the bitcoin transaction. They were running it without obtaining any trade license from the BBMP,” said Alok Kumar, additional commissioner (Crime), Bengaluru city police. The police added users had been approaching the ATM after they received a 12-digit OTP for making the deposit or withdrawal. It was also pointed out that there was no indicators affixed at the kiosk to indicate the bitcoin exchange rate.

“We asked the operator about the bit coin rates and to which he said there was no fixed rate and it would vary from customer to customer. The RBI has stated that bitcoin cannot be used as legal tender,” Alok Kumar added. A case of cheating and IT act violations has been booked against the operator Harish. The police also added that only the kiosk was raided and not the premises of Unocoin office in the city.